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Wiley: Engaging with education

Participation rates in higher education have been growing steadily across the globe in recent years: between 2000 and 2014, the number of students in higher education institutions more than doubled, from 100m to 207m1.

But stark disparities remain: only 1% of the poorest students spent more than four years in higher education, compared to 20% of the richest.

Target 4.3 introduces technical, vocational, tertiary and adult education into the global development agenda with a target of ensuring that by 2030, all women and men have access to affordable and quality technical, vocational and tertiary education, including university. In addition, target 4.7 challenges schools and universities to build in key sustainability concepts across their curriculums.

One of the most important ways that Wiley contributes to society is by sharing scientific and scholarly content to communities around the world.

In our SDG-driven engagement with Wiley, we are encouraging the company to broaden access to education materials and support the generation of impactful research in developing markets, thereby supporting both quality education and developments towards good health globally.

However, it is not accessible to all: on average, only 8% of young adults are enrolled into higher education in the poorest countries, compared to 74% the richest countries2.

Progress has been made – between 2000 and 2014, the number of students in higher education rose from 100m to 207m – but bolder efforts are needed to ensure that no one is left behind.

Wiley: advancing scientific knowledge

The Hermes SDG Engagement Fund seeks strong investment returns through stock picking and positive societal impact through engagements focused on the SDGs. This is illustrated by our exposure to John Wiley & Sons.

Wiley’s 201-year history is rooted in educational publishing, primarily scientific, technical and medical books and journals. Its vast catalogue of textbooks and online courses means that it is well positioned to support the broadening of access to necessary educational materials and, in turn, promote high-quality education globally.

As a founder of the UN-backed Research4Life initiative, a platform which provides scientific content free of charge to researchers in developing countries and publishes internationally-recognised health care and policy research, Wiley has established a strong reputation in the scientific and medical fields, often publishing significant breakthroughs in these areas. Wiley, therefore, plays an important role in advancing human welfare and, ultimately, economic progress by promoting the availability of knowledge.

However, paywalls restrict access – and impede an already disadvantaged effort on research. According to Frontiers, almost 80% of journals and 93% of sustainability research are hidden behind a paywall. To solve development challenges identified by the SDGs, knowledge must spread beyond these walls to catalyse new ideas and developments. This demands action: broadening access to knowledge and supporting its generation, while keeping the challenges set out by the SDGs front of mind.

We are engaging with Wiley on SDGs three and four, and we believe the company will be able to generate positive outcomes by aligning its actions with the SDGs.

Wiley has exposure to the SDGs:

SDG 3: Ensure healthy lives and promote well-being for all at all ages

In July, we spoke with Wiley’s investor relations team. We discussed the company’s approach to broadening access to its educational and research materials, including in LMIC markets. Encouragingly, the company’s new chief executive Brian Napack – the first externally appointed CEO in the company’s history – is cognisant of our agenda and the role a knowledge business can play in the world.

To align its corporate practices more closely with the SDGs, we are encouraging Wiley to:

Develop a strategy that broadens access to important education materials and scientific and medical research fromdeveloping markets, thereby supporting quality education and good health outcomes. Digitalisation has transformed the publishing industry: there has been a significant decline in textbook sales in recent years, but the mass shift to digital – which now accounts for 75% of Wiley’s revenues – has resulted in lower price points. These reduced price points have presented opportunities for Wiley to enter new markets – particularly in, India and Latin America – with the potential to generate new revenue streams alongside creating positive societal impact. There are similar opportunities for Wiley to widen its research institution customer base in the aforementioned markets, as well as China. Subsequently, it can broaden access to key research even further, while providing support to authors, located in these regions, during the publication process and, in turn, promoting visibility and influence of the research undertaken in emerging regions and/or that directed towards meeting the challenges identified by the SDGs.

The company has acknowledged that there are mutual benefits – to both the company and wider society – of expanding its business into emerging economies and has demonstrated a commitment to continuing the conversation in the second half of the year. We will continue to engage with the company, and in particular the new CEO, to establish this agenda at a board level, including the reformation of its sustainability committee and development of its plans about playing an active role in advancing the SDGs by 2030.

The value of investments and income from them may go down as well as up, and you may not get back the original amount invested.

Any investments overseas may be affected by currency exchange rates.

Past performance is not a reliable indicator of future results and targets are not guaranteed.

Investments in emerging markets tend to be more volatile than those in mature markets and the value of an investment can move sharply down or up.

This document does not constitute a solicitation or offer to any person to buy or sell any related securities or financial instruments.

1 “Six ways to ensure higher education leaves no one behind” published by UNESCO in April 2017

2 “Six ways to ensure higher education leaves no one behind” published by UNESCO in April 2017

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Will PomroyLead EngagerWill joined Hermes in 2015 and, in addition to overseeing and leading the engagement programme for the SDG Engagement Fund, provides ESG analysis for and engagement with stocks in the firm’s small- and mid-cap strategies. He chairs the Corporate Governance Expert Group of the Quoted Companies Alliance and is a member of the Corporate Governance Committee of the Institute of Chartered Accountants in England and Wales. Will holds an MSc in Public Policy and Management from Birkbeck College at the University of London and a BSc (Hons) in Forensic Science from the University of West of England. Read all articles by Will Pomroy